The ratings reflect The Stanley Works Co.'s above average business position as a leading producer of a wide array of tools and hardware products for do-it-yourself, construction, and industrial markets, and moderate financial policies. The company's business profile is supported by high brand name recognition, significant international market presence, and end-user diversity, including substantial sales to the more stable repair/remodel markets. These factors should mitigate earnings cyclicality. Despite recent weak consumer and industrial demand, higher commodity costs, and on-going pricing pressures, the company has been able to generate stable earnings, while also improving operating margins to about 15%. Benefits realized from its multiyear restructuring program, improved cost controls, and better productivity are driving its competitive performance and should continue to
